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Long-term EU budget: the EP calls on the Council to reach an agreement

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MEPs hope to achieve a common position with the Council before the European elections in May 2019, to avoid problems in the implementation of new programs.

The Parliamentary fixed its previous data the preparation of the new EU long-term budget on November 14.

In the report of the Polish MEP Jan Olbrycht of the European People's Party, the French Social Democrat Isabelle Thomas, the Belgian Social Democratic MEP Gérard Deprez and the Polish MEP, Janusz Lewandowski of the European People's Party, Parliament regrets "that no tangible progress is observed so far "in the Council, and encourages the regular meetings between the EP negotiating team and the next Council presidencies.

The objective of the long-term budget, also known as the Multiannual Financial Framework (MFP), is to avoid setbacks in the next European programs and job losses due to delays in the financial framework, as already experienced in the past.

Figures of the future

The report, according to Olbrych, addresses the next steps of the MFF, as well as proposals related to its structure and flexibility, and provides specific figures for each EU program.

MEPs recognized that the Commission's proposal for a budget for the years 2021-2027 of 1.1% of gross national income (GNI) of the 27 Member States would mean that the EU could not meet its political commitments.

To meet the expectations of the public, MEPs want to increase the EU budget to 1.3% of gross national income. This significant measure, according to Thomas, adjusts the budget to the commitments announced by the EU.

Parliament opposes the key European policy, such as cohesion or agricles, as well as the European Social Fund or the Youth Employment Initiative.

In line with the objectives of the Paris Agreement on climate change, MEPs will have to increase the items determined to climate issues to reach the emission reduction target to 30% as soon as possible.

Own resources

Parliament has made proposals on how it should finance the EU budget in the future. The report emphasizes that no agreement can be reached on the future MFF without the EU obtaining more of its "own resources". Currently, the EU own resources system is "too complex, unfair and not transparent" and although two sources, VAT and customs duty systems must be modernized, new own resources must also be introduced gradually.

Deprez explains that the advantage is that "we can allow a reduction in the contribution of the GNI of the member states to the European budget."

Parliament supports the Commission's proposal in May that introduces a reform of EU revenue with a basket of possible new EU own resources. They include a consolidated common base of corporate tax, corporate income tax and environmental taxes.

Lewandowski adds that Parliament would like to expand this list of recipients with a tax on financial transfers at European level and a special taxation for companies in the digital sector.

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